According to news agency Skrin , AvtoVAZ is planning to make 12,000 workers redundant, a move which would be one of the largest layoffs in Russia’s corporate history.

The report says that AvtoVAZ president Vitaly Vilchik said the company is laying off “excess workers” amid an overproduction crisis, the Ladaonline Internet newspaper reported Monday.

AvtoVAZ is unable to sell its models, which include the popular Lada, following an inflow of cheap foreign imports. Stopping the production line has not resolved the crisis and personnel cuts are needed, Vilchik said.

Earlier this month it was announced that AvtoVAZ has decided to halt production for two weeks – October 26 to November 9 – in response to a build-up of stocks.

It has also been reported in Russia that AvtoVAZ stocks have risen to 75,000-77,000 AvtoVAZ vehicles – representing some 28 days of production.